Services Stormwater Utility Fund Creation

Financial Due Diligence and Planning for Stormwater Utility Enterprise Funds

Stormwater management is a growing priority for municipalities and counties. Aging drainage systems, increased development, flooding concerns, water quality requirements, and infrastructure maintenance needs can place significant pressure on local budgets.

A stormwater utility fund provides a dedicated revenue source to support stormwater operations, maintenance, planning, regulatory compliance, capital improvements, and long-term resilience.

Financing Stormwater Operations, Maintenance, and Capital Improvements

Stormwater infrastructure is essential to protecting property, improving water quality, reducing flooding, and supporting community resilience. However, many stormwater needs compete with roads, parks, public safety, and other priorities for limited general fund dollars.

By creating a dedicated stormwater utility fund, local governments can establish a more reliable funding source for stormwater management.

Stormwater utility planning may include:

  • Capital improvement planning
  • Customer class evaluation
  • Grant and loan funding strategy
  • Impervious surface data review
  • Long-term financial forecasting
  • Parcel evaluation
  • Policy and ordinance support
  • Public communication support
  • Revenue needs analysis
  • Stormwater fee structure development
  • Stormwater program cost evaluation
workers inspecting equipment

Budgeting for Short-Term and Long-Term Stormwater Needs

Stormwater needs often range from routine maintenance to major capital improvements. A stormwater utility fund can help communities move from reactive spending to proactive planning.

A designed stormwater runoff.

Opening New Opportunities for Grants and Loans

Communities with a stormwater utility enterprise fund may be better positioned to pursue funding options because dedicated revenue can provide matching funds or support debt repayment.

construction underway of pipe

Distributing Stormwater Costs Fairly

Stormwater management benefits the community, but runoff impacts are often tied to impervious surfaces such as buildings, parking lots, roads, and rooftops. A stormwater utility fund can help distribute costs more equitably by connecting fees to runoff contribution.

Let’s Connect

Shannon Moore headshot

Shannon Moore

Director of Finance Services

Dori Sabeh headshot

Dori Sabeh, PE, GISP

Practice Area Lead, Stormwater

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